The introduction of goods and service tax is probably one of the most talked about events in recent times. While many businesses try to adapt to the new taxation, advisors say that apart from the additional tax liability of 3%, GST has not had much effect on their operations.
Talking about the systems and processes advisors need to get in place, Mumbai-based Vinod Jain of Jain Investment says that advisors will have to upgrade their existing accounting software, like tally, to a newer version that accommodates GST.
Kolkata-based IFA Bharat Bagla does not see difficulties in complying with GST norms. “If you have appointed a CA to take care of your taxation, he will help you comply with the GST norms and filing the returns. I don’t think he will charge an additional fee for this. If you are doing it in-house, you have to just upgrade your system to include the new tax structure, and you are good to go,” he says.
Bharat believes, though, that GST will increase the compliance cost for IFAs. “Earlier, we were paying a service tax of 15%, now we will have to pay GST of 18% from the commission. In addition, we have to file tax quarterly instead of half yearly. All this is obviously going to increase our operational cost marginally,” he says.
Kartik Jhaveri of Transend India, who is a fee-based advisor, says that implementation of GST simply means that all fee payments made by their clients after July 1, will be charged according to the new GST slab instead of Service Tax. “I don’t think there will be much difference from an operational point of view. We must take into perspective that even service tax has been increasing over a period, so instead of being scared of GST simply look at it as a higher service tax,” he says. Kartik then goes on to add: “I am not telling there will be no effects because of GST, but for a company, which already has its own set of accountants and taxation department, implementing GST for us has been only about putting in the new tax structure. We alerted our clients that the new taxation model will be implemented and all payments after the date have been charged 18% GST instead of 15% service tax.”
Advisors can apply online for fresh GST registration number or migrate from existing service tax number to GST registration by visiting https://www.gst.gov.in/
After obtaining GST registration, advisors can follow the given process to get gross commission:
- You can send an email for their registered email id to amfigst@camsonline.com with details of the GST number. They will also have to attach scanned copies of GST registration certificates.
- You can also visit their nearest CAMS Service Centre along with the mentioned documents.
- You can register yourself on their own through AMFI’s website. Distributors will have to key in their ARN code and PAN details. An OTP will generate to the registered mobile number and email address. The distributor will be required to input the OTP in the relevant box and update state-wise GSTN numbers and upload the registration certificate images.
